President Trump posts cartoon image depicting him firing Fed Chief Powell

Core Viewpoint - President Trump has publicly criticized Federal Reserve Chairman Jerome Powell, suggesting he may attempt to remove him due to dissatisfaction with Powell's cautious approach to interest rate cuts [3][4]. Group 1: Trump's Criticism and Actions - Trump has labeled Powell as "Too Late Powell" for his reluctance to cut interest rates, despite the Fed lowering rates for the first time this year [3]. - A recent social media post by Trump depicted him firing Powell, indicating ongoing tensions between the President and the Fed Chair [2][3]. - The Trump administration has previously expressed discontent with the Fed's renovations, hinting at potential motives for seeking Powell's removal [4]. Group 2: Legal and Market Implications - Historically, no U.S. president has successfully fired a Fed Chair, and legal interpretations suggest that such an action may not be permissible under current law [4]. - The financial markets have shown minimal reaction to Trump's threats against Powell, although concerns exist that firing Powell could lead to increased long-term interest rates due to perceived shifts in Fed independence [5][6].